Russia Car-Sales Slump Expected to Worsen in 2015
Predicting a 24% decline from a 2014 result that was off 10% from the prior year, industry spokesman Joerge Schreiber says: “Nobody doubts that there will be a crisis. The question is how severe and long it will last.”
With international sanctions biting, the ruble collapsing, oil revenue evaporating and recession looming, Russia sees 2014 new-vehicle sales fall 10% to 2.49 million units and the industry expects an even worse result this year.
Data from the Association of European Businesses’ Automobile Manufacturers Committee shows a slight 2.4% increase in December deliveries to 270,653 units, but it was not enough to bring cheer to the industry.
Committee Chairman Joerg Schreiber says despite the December result, the cumulative volume loss of 10% makes it a disappointing year for the Russian car market.
“In the face of the looming recession, expectations for 2015 are even lower,” Schreiber says in a statement. “Our forecast for the total market of passenger cars and light commercial vehicles is 1.89 million units, equivalent to a 24% contraction of the market on a year-on-year basis.
“Nobody doubts that there will be a crisis. The question is how severe and long it will last.”
Deliveries strengthened in November and December as Russians invested their deflating rubles in tangible assets. But General Motors, Audi and Jaguar Land Rover nevertheless suspended sales in Russia in December after a 40% fall in the value of the ruble in just six months. Other automakers slowed production and raised prices.
AvtoVAZ’s Lada ended the year as the top-selling brand despite sales contracting 19% to 387,307 units.
Kia moved up to second place with deliveries off just 1% at 195,691 units, pushing Renault down to third as it dropped 7% to 194,531.
The Chevrolet brand managed a top-10 finish, coming in eighth despite a 29% fall to 123,175 units.
Ford’s 38% plunge to 65,996 units saw it drop to 11th place from ninth in 2013.
The AvtoVAZ-Renault-Nissan alliance increased its lead in 2014 even as its sales fell 7.0% to 764,245 units. The Volkswagen Group lost ground, dropping 12.8% to 260,755 units.
Kia’s 195,691 deliveries put it ahead of General Motors, off 26.4% at 189,484.
Apart from the Chevrolet result, GM’s Opel brand fell 20.2% to 64,985 units and Cadillac slipped 12.5% to 1,324.
Lada’s Granta was the top-selling model in 2014 with sales off 8.5% to 152,810 units. Hyundai’s Solaris was second as its sales rose by 653 units to 114,644. Kia’s New Rio was third with deliveries up 4.3% to 93,648 units.
The Chevrolet Niva fell to 11th as deliveries shrank 18.6% to 43,441 units. The Ford Focus ended 2014 well back in 23rd place as its sales collapsed 58.5% for the year to just 27,860 units.
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